CPSM Sustainability & Corporate Social Responsibility in Supply Management

Question 1

A supply manager is incorporating Environmental, Social, and Governance (ESG) criteria into supplier selection. Which of the following is an example of the 'Governance' component of ESG?

Accepted Answer

A supplier's board composition, anti-corruption policies, and executive pay transparency

Answer

A supplier's greenhouse gas emissions per unit of production

Answer

A supplier's workplace safety record and employee diversity metrics

Answer

A supplier's use of renewable energy sources

Question 2

Scope 3 greenhouse gas emissions are MOST relevant to supply managers because they include:

Accepted Answer

Indirect emissions across the value chain, including those from suppliers' operations and purchased goods

Answer

Direct emissions from the buying organization's own facilities and vehicles

Answer

Emissions from purchased electricity consumed by the buying organization

Answer

Emissions regulated directly by environmental agencies at production facilities

Question 3

A circular economy approach in supply management emphasizes:

Accepted Answer

Designing products and supply chains to eliminate waste by keeping materials in use through reuse, remanufacturing, and recycling

Answer

Maximizing the volume of goods produced and consumed to grow the economy

Answer

Centralizing all production at a single facility to reduce transportation emissions

Answer

Outsourcing all sustainability responsibilities to third-party certification bodies

Question 4

Conducting a supplier sustainability audit PRIMARILY serves to:

Accepted Answer

Assess whether a supplier's environmental, labor, and social practices meet the buying organization's standards and legal requirements

Answer

Verify a supplier's financial ability to fulfill large contracts

Answer

Evaluate a supplier's pricing competitiveness against market benchmarks

Answer

Determine whether a supplier qualifies for minority-owned business certification

Question 5

The concept of 'responsible sourcing' in supply management MOST closely aligns with which principle?

Accepted Answer

Ensuring that goods and services are obtained in a way that respects human rights, environmental standards, and ethical business practices throughout the supply chain

Answer

Always selecting the lowest-cost supplier regardless of their practices

Answer

Sourcing all materials domestically to reduce carbon emissions from international shipping

Answer

Prioritizing certified organic materials for all purchased inputs

Question 6

Which supply management strategy BEST reduces the environmental impact of a company's packaging procurement?

Accepted Answer

Specifying packaging materials that are recyclable, use post-consumer recycled content, and are right-sized to minimize material use

Answer

Increasing packaging thickness to reduce product damage rates during shipping

Answer

Consolidating packaging orders to one annual purchase to reduce the number of deliveries

Answer

Requiring all packaging suppliers to be located within 50 miles of the manufacturing facility